UERC Upholds Cancellation of Projects Under the 200 MW Solar Program
The Commission found no legal grounds to reconsider the cancelled LoAs
July 30, 2025
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The Uttarakhand Electricity Regulatory Commission (UERC) has dismissed review petitions filed by 12 solar power developers against the cancellation of letters of award (LoAs) for projects issued under the state’s 200 MW Solar Program.
Background
The 200 MW solar program was initiated by the Uttarakhand Renewable Energy Development Agency (UREDA) under the state’s 2013 solar policy to facilitate tariff-based competitive bidding for utility-scale solar projects. The aim was to assist the Uttarakhand Power Corporation (UPCL) in fulfilling its renewable purchase obligation.
The developers were awarded projects under the Type I category with original commissioning deadlines set for 2019–2020. Due to delays, the deadlines were extended multiple times, most recently up to December 31, 2024.
The Commission, in a suo motu order in March 2025, cancelled the LoAs after observing insufficient progress and incomplete documentation from most developers. In response, the developers filed review petitions.
They made multiple submissions and cited several impediments, including:
- Land acquisition issues, particularly in hilly terrain, along with legal complications in executing valid lease deeds
- Delays in obtaining transmission feasibility reports from relevant authorities and delays in the execution of power purchase agreements by UPCL
- Partial compliance, including submission of some lease documents, work orders, and procurement of solar equipment
- Procedural concerns, such as a lack of personal hearing before the suo motu order, and the Commission relying solely on UREDA’s submissions
- Continuity in policy, highlighting the Uttarakhand Solar Energy Policy, 2023, which raised the solar capacity target to 2,500 MW by 2027, and the petitioners’ projects aligned with the long-term policy objectives.
- Jurisdictional overreach, with claims that LoA cancellation was an administrative function and beyond the Commission’s scope
Commission’s Analysis
UERC noted that the petitioners failed to present any error apparent on the record or any new and significant material evidence to merit a review. They had merely resubmitted data already considered during the March 2025 proceedings.
The Commission stated that the developers had been given an adequate opportunity to present documents such as lease deeds, loan agreements, and work orders.
However, most failed to submit complete documentation, and many lease deeds were either conditional or related to shared or duplicated land parcels. The Commission rejected claims of procedural lapses, emphasizing that the petitioners were aware of the documentation requirements and had ample time to comply.
UERC maintained that it had the authority to cancel the LoAs in the interest of policy enforcement and regulatory oversight. The projects will not proceed under the 200 MW Solar Program.
The Commission directed the petitioners to reapply under the Uttarakhand Solar Policy, 2023.
This order also means that previously discovered tariffs under the old program are no longer applicable, and new projects will be subject to updated competitive rates.
Recently, UERC rejected a petition seeking permission to install an additional 600 kW rooftop solar system under the net metering arrangement as the proposed expansion would have raised the total capacity to 1.6 MW, surpassing the 1 MW cap set by the Renewable Energy Regulations, 2023.
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